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Before making a major financial decision you
should consult a qualified professional.

Methods of Borrowing to Invest

With both of the following methods of borrowing, you can
borrow slowly over time as you use the money to invest, principal repayments are
not necessary, and you can usually get a relatively low interest rate.

Line of credit mortgage

This is probably the best
way to borrow to invest. If your house is paid off, you can
probably get a line of credit mortgage at the bank prime interest
rate. You should arrange a line of credit for more than you plan
to invest. This gives you a cushion should any unforeseen event
happen.

Margin brokerage account

With a margin brokerage
account, you must have some money or stocks in a non-registered
account with the brokerage before you can buy stocks on margin.

If there is a crash in the stock markets, you may get a margin call,
and have to either sell stocks or transfer money into the account.
For this reason, it is important to ensure that you have enough margin
available to withstand a sizeable drop in your market value.
This helps to avoid a margin call, which results in selling the stocks
when they are at a low.